SUCHITRA SHEORAN

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INTRODUCTION Hello! I am an Auditor. I
inspects and verifies the
accuracy of a company’s
operational and/or
financial records.
AUDITOR
A person who conducts an audit.
AUDIT
An official inspection of an organisation’s accounts.
S. 141 COMPANIES ACT, 2013.
APPOINTMENT – 1st AGM – 6th AGM – 6th meeting
REMUNERATION – general meeting – 1st auditor – BOD.
 POWERS
RIGHT OF ACCESS TO BOOKS AND ACCOUNTS ETC.

RIGHT TO OBTAIN INFORMATION OR EXPLANATION

Newton v.
Birmingham Small
RIGHT TO VISIT AND INSPECT BRANCH ACCOUNTS
Arms Co. Ltd OF THE COMPANY
(1906), 2 Ch. 378.

RIGHT TO SIGN AUDIT REPORTS

RIGHT TO ATTEND AND SPEAK IN GENERAL MEETING

DUTIES OF AUDITOR
STATUTORY DUTIES OF AUDITOR
◦ Auditor should comply with the auditing standards
◦ Duty to make certain inquiries
◦ Duty to make report of audit
◦ Auditor’s duty in case of detection of fraud
◦ Duty to attend general meeting
◦ Duty to make statement in prospectus
◦ Duty to produce documents and evidence
◦ Duty not to render certain services
AUDITOR’S DUTY TO EXERCISE STANDARD OF CARE AND SKILL
AUDITOR NOT LIABLE IF HE IS DECEIVED
LIABILITIES OF AUDITOR
THE CIVIL LIABILITIES OF AUDITOR
Liability for negligence
Liability for misfeasance
CRIMINAL LIABILITIES OF
AUDITOR
PROFESSIONAL MISCONDUCT BY
AUDITOR
PUNISHMENTS FOR
PROFESSIONAL MISCONDUCT
 CONCLUSION
AN AUDITOR IS ‘WATCH DOG’
NOT A ‘BLOOD HOUND’.
ICAI – Chartered accountants
play a vital role in monitoring
finances of and ensuring financial
discipline in business, more
particularly Companies registered
under Companies Act, 2013.